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Cross-examination: Why being a rainmaker matters

By Barbara Straczynski posted 07-06-2015 11:27 AM

  
Christine S. Filip is president of Business Development Partners and co-chair of the New Jersey State Bar Association’s Law Office Management Committee. She is one of the organizers of the upcoming “Be a New Jersey Rainmaker, Now!” seminars and recently discussed the upcoming program. The continuing legal education seminars will be held July 16 in New Brunswick, July 21 in Roseland and July 30 in Haddonfield. To register or learn more, visit njsba.com

Q: What does it mean to be a rainmaker? 
A:
In simplest terms it means one who brings in new client business for their own book of business and for a colleague through cross selling. Historically, law firms have always had too few rainmakers as a percentage of all lawyers.
 
Q: Is this an overlooked skill? 
A:
It is certainly overlooked, and actually untreated, in law schools. A handful of law schools are now teaching business skills, but not rainmaking. While larger firms have in-house training programs on the subject, the vast majority of lawyers work in solo, small and mid-sized firms that do not have the capability to train lawyers early and continually so that they are able to build a strong book of business and be considered for partnership. This also hinders lawyers who leave to start their own firms. Since most lawyers do not have a background in sales before they become lawyers, the set of learnable skills they need to be successful rainmakers in the profession is completely absent.
 
Q: Why is this important? 
A:
Lack of rainmaking skills creates a severe diminution on income potential. It has always been important for a lawyer’s financial well being but today, it is critical, and I cannot state this too strongly. The number of equity partnerships has dwindled to an average of 22 percent of all available spots, down from over 30 percent. As lawyers get slotted into non-equity partnership status, if they do at all, their income potential is limited. Only some will progress to equity positions. Many will become counsel at a static income level. Added to the evaporation of equity slots, many Baby Boomer lawyers, who might have exited the profession, have stayed on because of the financial impact of the Great Recession. With fewer than half of firms having business succession plans, part of which would address age limits for retirement, the top of the partnership pyramid will continue to shrink.
 
Quite simply, the investment one makes to become a lawyer now has a much lower payback. Finally, the decreased equity potential has a negative effect on diversity, a key part of social responsibility in the corporate realm. Law firms have, and have had, very low numbers of women and minorities in management positions because so few are full-equity partners. As firms compete for business from their corporate counterparts, they increasingly look like anachronistic entities out of step with corporations that value and measure social responsibility (of which diversity is a subset).
 
To newer lawyers, many of whom are choosing to set up their own firms, and for tenured lawyers, who leave the larger firm because of lack of income elasticity, not understanding and utilizing rainmaking skills clouds their ability to succeed.
 
Q: What are the current challenges facing New Jersey attorneys that this program will address? 
A:
The program addresses the lack of rainmaking training in a still-difficult economic and competitive environment, as noted in my previous comments. We focus on a multi-generational audience, which includes tenured lawyers who want to start their own firms, managing partners who need both more rainmakers and managerial guidance on best practices to ensure better returns on investments in marketing and business development, and newer lawyers who want to succeed in firms or start their own. Importantly, everything we teach is grounded in New Jersey’s ethical rules and we include many practical exercises to allow attendees to practice the skills during the program. Attendees will know what to do, how to do it, and have a business development plan when they leave.
 
Q: What are the top five skills attendees will acquire at this program? 
A:
1. How choose the most effective means of acquiring and keep clients: speaking engagements, publishing, networking, getting quoted in the media, and using social media.
2. How to choose the best groups and associations to network within.
3. How to make rain ethically by knowing the Rules of Professional Conduct so that they don’t face ethics inquiries.
4. How to manage a law firm or practice over the long term to build profitable fees and acquire and keep loyal clients, because client retention is directly linked to profitability.
5. How to interact with the media.

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